Strategic compensation in South Korea's publicly traded firms

Autor: B. Wayne Rockmore, Vida Scarpello, Michael Byungnam Lee
Rok vydání: 1995
Předmět:
Zdroj: The International Journal of Human Resource Management. 6:686-701
ISSN: 1466-4399
0958-5192
DOI: 10.1080/09585199500000043
Popis: This strategic compensation model based on contingency theory of organizations proposes that a fit between the organization's business environment and compensation system will affect the firm's performance (Rockmore, 1991; Rockmore and Scarpello, 1994). This proposition was tested with a set of Korean sample data of seventy-five publicly traded companies within thirty-four three-digit Standard Industrial Classification codes. The cluster analysis applied to the 7-item task environment uncertainty components resulted in two group classifications that face relatively ‘more certain’ and ‘more uncertain’ environments. Principal component factor analysis of the 8-item compensation system components resulted in three compensation system factors and subsequent cluster analysis classified firm pay plans into two clusters, which we labelled ‘more traditional’ and ‘more innovative’. Discriminant analysis confirmed the resulting classifications of both task environment and compensation system types. With both ROA an...
Databáze: OpenAIRE